
Global Cryptocurrency Market Overview: January 12–18, 2026
📌 The market entered a consolidation phase, with $BTC holding around $95,000–$96,000 and $ETH near $3,300–$3,400. Total market capitalization hovered at approximately $3.09 trillion, slightly down from the previous week, while average daily trading volume reached $104 billion, reflecting a 22% increase, indicating continued interest despite reduced liquidity.
💡 The spotlight was on institutional inflows as spot BTC ETF inflows surged to $1.42 billion, the strongest since early October. This helped major assets remain more stable compared to altcoins, bolstering expectations that the current price levels still have "real buyers," though the trend remains in a consolidation phase.
🔎 In the derivatives space, altcoin open interest continued to cool off compared to the previous highs, signaling a rotation toward $BTC and $ETH. This suggests a reduction in leverage risk in the market, but also indicates that short-term capital is waiting for clearer signals before returning to higher beta assets.
⚠️ The U.S. policy front continues to create noise, with discussions around the CLARITY Act being postponed until late January. This delay, amid disputes over stablecoin yields and DeFi restrictions, caused market sentiment to waver. Coinbase's decision to withdraw initial support but maintain negotiations further fueled uncertainty, indicating that regulatory clarity is still a moving target.
🧭 Globally, the market shows clear divergence, with South Korea lifting its nine-year ban on corporate crypto holdings (up to 5% of equity), while Dubai imposed stricter regulations, including a ban on privacy tokens. This divergence could create regional capital flows and fuel more volatility in privacy coins, as the "freedom vs. control" narrative intensifies.
🔁 Risks remain present, especially following a major social engineering attack that resulted in a loss of $282 million. This highlights the increasing sophistication of scams during bull markets. At the same time, significant token unlocks for ARB, ONDO, and other tokens could add short-term supply pressure, making it harder for altcoins to break out without corresponding demand.
✅ Overall, the major assets are being supported by ETF inflows and a reduction in leverage risk, but market strength remains fragile due to ongoing regulatory uncertainty and potential short-term supply shocks. Moving forward, the focus is likely to stay on policy developments and how capital flows choose between "safety in majors" or "quick gains in altcoins" as volatility reemerges.
#CryptoInsights #MarketTrends

Bitcoin dominance hits 59 per cent: Is the altcoin season over?
Anndy Lian
Bitcoin dominance hits 59 per cent: Is the altcoin season over?
US equities ended Thursday on a high note, breaking a brief two-day slide as optimism around artificial intelligence reignited investor appetite. The catalyst came from across the Pacific: Taiwan Semiconductor Manufacturing Co.’s strong earnings and bullish 2026 guidance reassured markets that AI demand remains robust rather than speculative. This sentiment lifted chipmakers such as Nvidia and ASML to record levels, pushing the Nasdaq Composite up 0.25 per cent to 23,530.02, while the Dow surged 0.60 per cent to 49,442.44 and the S&P 500 edged higher by 0.26 per cent to close at 6,944.47.
Meanwhile, Asian markets extended their momentum into Friday, with the MSCI Asia Pacific Index hitting a new all-time high and poised for its fourth straight weekly gain, the longest such streak since May, fuelled largely by tech strength, including a jump in Indian equities after Infosys delivered upbeat results.
In contrast, the crypto market pulled back modestly, shedding 0.75 per cent over the past 24 hours. This dip reflects a classic post-rally consolidation, but deeper forces are at play. Bitcoin dominance climbed to 59.12 per cent, signalling a flight to relative safety within the digital asset space as traders rotated out of altcoins.
The Altcoin Season Index declined 11 per cent in a day, underscoring waning enthusiasm for riskier tokens, a pattern reminiscent of 2025, when Bitcoin outperformed altcoins by 38 per cent amid macroeconomic uncertainty. Layer-1 networks such as Solana and Ethereum lag, and social sentiment metrics indicate declining momentum for smaller-cap projects. If the Altcoin Season Index remains below 25, this Bitcoin-centric phase could persist.
Regulatory ambiguity added another layer of caution. In Washington, the CLARITY Act stalled due to disputes over whether stablecoin issuers should be allowed to pay interest, a seemingly technical detail with profound implications for how regulators classify digital assets. Simultaneously, Binance temporarily halted deposits and withdrawals for several tokens, including ARB and 1INCH, citing technical reviews.
Such moves often stem from compliance checks, but they fuel market-wide nervousness, particularly among altcoin traders who rely on liquidity and exchange access. Bitcoin itself remains somewhat insulated. US spot ETFs now hold US$126.8 billion in assets under management, providing a structural bid that buffers against retail-driven volatility.
Perhaps the most telling signal comes from derivatives markets. Open interest in perpetual futures swelled by 18.9 per cent to US$655 billion, but this surge coincided with US$68 million in Bitcoin liquidations, US$55 million from long positions alone. Funding rates spiked by 60 per cent, revealing overcrowded bullish bets.
With Bitcoin’s RSI hovering between 65 and 78, the asset remains technically overbought despite the minor pullback. This suggests that the market is undergoing a necessary deleveraging phase rather than a fundamental reversal. Such corrections are typical after sharp rallies, especially when leverage builds rapidly.
From my viewpoint, this moment encapsulates the diverging narratives shaping financial markets in early 2026. Traditional equities, particularly those tied to AI infrastructure, benefit from clear earnings visibility and institutional backing. TSMC’s forecast acts as a proxy for real-world AI adoption, not just hype. Crypto, however, still operates in a regulatory grey zone where policy delays and exchange actions can trigger outsized reactions.
The current rotation into Bitcoin reflects a maturing market. Investors increasingly treat it as digital gold or a macro hedge, while reserving altcoins for higher-conviction, higher-risk scenarios. That said, Ethereum’s staking activity continues to reach all-time highs in transaction volume, suggesting an underlying utility that may eventually decouple it from broader risk-off moves.
The key levels to watch remain Bitcoin’s US$93,000 support and the Altcoin Season Index threshold. If Bitcoin holds firm and the index rebounds above 25, altcoins could stage a recovery. But if regulatory headwinds intensify or macro data shifts, the safety-first trend will likely deepen. For now, the dip appears corrective, a pause for breath after a sprint, not the start of a retreat.